Flagging labor governance in far-flung supply networks has prompted greater scrutiny of instrumental CSR and calls for models that are tethered more closely to accountability, constraint, and oversight. Political CSR is an apt response, but this paper seeks to buttress its deliberative moorings by arguing that the agonist notion of ‘domesticated conflict’ provides a necessary foundation for substantive deliberation. Because deliberation is more viable and effective when coupled with some means of coercion, a concept of CSR solely premised on reciprocal (...) corporate-stakeholder engagement is pre-mature; efforts should first be directed toward the antecedents of reciprocity and how it is to be achieved, and only then does deliberation become a reliably substantive exercise. The resulting account of agonistic CSR is generated through agonistic principles of realism, pro-action, contestation, and countervailence, and illustrated by the Bangladesh Accord. (shrink)

ABSTRACT:The extant literature on cross-national differences in approaches to corporate social responsibility (CSR) has mostly focused on developed countries. Instead, we offer two inter-related studies into corporate codes of conduct issued by developing country multinational enterprises (DMNEs). First, we analyse code adoption rates and code content through a mixed methods design. Second, we use multilevel analyses to examine country-level drivers of differences in code content—specifically, elements of a country’s National Business System (NBS). We find that DMNEs are much more likely (...) to adopt a code of conduct than their domestic counterparts; however, this does not translate into greater code comprehensiveness. We also find support for the ‘substitute view’ of CSR in developing countries, i.e. that MNEs from poorer countries and from countries with lower governance effectiveness tend to express more comprehensive commitments. However, this dynamic does not extend to a country’s labour system; instead, CSR appears here to match the efficiency of a country’s labour market, thus reflecting the ‘mirror view’ of CSR. (shrink)

This article reviews the interdisciplinary literature on the UN Global Compact. The review identifies three research perspectives, which scholars have used to study the UN Global Compact so far: a historical perspective discussing the Global Compact in the context of UN-business relations, an operational perspective discussing the composition and impact of its participants, as well as a governance perspective discussing the constraints and opportunities of the initiative as an institutionalized arena for addressing global governance gaps. The authors contrast these three (...) perspectives and identify key empirical as well as conceptual scholarly contributions. The remainder of this article contains focused summaries of the articles selected for this Special Issue. All articles are introduced and evaluated against the background of the three research perspectives. (shrink)

Transnational corporations have become actors with significant political power and authority which should entail responsibility and liability, specifically direct liability for complicity in human rights violations. Holding TNCs liable for human rights violations is complicated by the discontinuity between the fragmented legal/political structure of the TNC and its integrated strategic reality and the international state system which privileges sovereignty and non-intervention over the protection of individual rights. However, the post-Westphalian transition—the emergence of multiple authorities, increasing ambiguity of borders and jurisdiction (...) and blurring of the line between the public and private spheres—should facilitate imposing direct responsibility on transnational firms. Mechanisms for imposing direct responsibility on TNCs are considered including voluntary agreements and international law. However, I conclude that a hybrid public-private regime which relies on non-hierarchical compliance mechanisms is likely to be both more effective and consistent with the structure of the emerging transnational order. (shrink)

This paper extends scholarship on multi-stakeholder initiatives (MSIs) in the context of corporate social responsibility in three ways. First, I outline a framework to analyze the strength of couplings between actors participating in MSIs. Characterizing an MSI as consisting of numerous local networks that are embedded in a wider global network, I argue that tighter couplings (within local networks) and looser couplings (between local networks) coexist. Second, I suggest that this coexistence of couplings enables MSIs to generate policy outcomes which (...) address the conditions of a transnational regulatory context. I argue that MSIs’ way of organizing enables them to cope with three challenges: the stability, flexibility, and legitimacy of governance. Reflecting on these challenges, the article identifies a number of problems related to MSIs’ role in transnational governance. Third, I discuss the UN Global Compact as an illustrative case and examine problems and opportunities related to its stability, flexibility, and legitimacy. (shrink)

Growth in CSR-washing claims in recent decades has been dramatic in numerous academic and activist contexts. The discourse, however, has been fragmented, and still lacks an integrated framework of the conditions necessary for successful CSR-washing. Theorizing successful CSR-washing as the joint occurrence of five conditions, this paper undertakes a literature review of the empirical evidence for and against each condition. The literature review finds that many of the conditions are either highly contingent, rendering CSR-washing as a complex and fragile outcome. (...) This finding runs counter to the dominant perception in the general public, among activists, and among a vocal contingent of academics that successful CSR-washing is rampant. (shrink)

Businesses increasingly assume political roles, despite issues of legitimacy. The presented two case studies illustrate how businesses harness their political influence in Corporate Social Responsibility (CSR) practices through collaboration and dialog with stakeholders and civil society actors. These cases are set around issues arising in global supply chains in sourcing activities where the core problem is associated with businesses managing extended responsibilities under conflicting institutional conditions. The article seeks to provide empirical examples of Political CSR and illustrates the role of (...) deliberative democracy in contemporary business behavior. It adopts a Western business perspective, more specifically from an end-producer and retailer’s standpoint. Findings suggest that civil society is influential in driving these businesses to act responsibly. Joint collaboration is understood as key to strive toward holistic solutions. Political CSR theory remains an ideal, but offers fruitful grounds for speculating on what the political role of business is or could be and how this translates into pragmatic implications for businesses. (shrink)

In a globalizing world, governments are not always able or willing to regulate the social and environmental externalities of global business activities. Multi-stakeholder initiatives (MSI), defined as global institutions involving mainly corporations and civil society organizations, are one type of regulatory mechanism that tries to fill this gap by issuing soft law regulation. This conceptual paper examines the conditions of a legitimate transfer of regulatory power from traditional democratic nation-state processes to private regulatory schemes, such as MSIs. Democratic legitimacy is (...) typically concerned with input legitimacy (rule credibility, or the extent to which the regulations are perceived as justified) and output legitimacy (rule effectiveness, or the extent to which the rules effectively solve the issues). In this study, we identify MSI input legitimacy criteria (inclusion, procedural fairness, consensual orientation, and transparency) and those of MSI output legitimacy (rule coverage, efficacy, and enforcement), and discuss their implications for MSI democratic legitimacy. (shrink)

This article analyzes the distribution of benefits from Fair Trade between producing and consuming countries. Fair Trade and conventional coffee production and trade were examined in Nicaragua in 2005-2006 and 2008. Consumption of the respective coffees was assessed in Finland in 2006-2009. The results indicate that consumers paid considerably more for Fair Trade-certified coffee than for the other alternatives available. Although Fair Trade provided price premiums to producer organizations, a larger share of the retail prices remained in the consuming country (...) relative to conventional coffee trade. Paradoxically, along with the certified farmers and cooperatives, Fair Trade empowers roasters and retailers. (shrink)

Developing countries need to reform legislation to ensure the global supply firms in ready-made garment industry is adequately addressing obligations of social responsibility. Literature typically focuses on strategies for raising responsible standards in global buying firms within the RMG industry, but fails to focus on implementing strategies for suppliers in developing countries. This article addresses this gap by specifically focusing on the RMG industry in Bangladesh, the home of the third largest RMG supplier in the world. It concentrates on analysing (...) how and to what extent the law can assist in developing social responsibility performance of the RMG manufacturing firms in developing countries. It ultimately concludes that a new governance approach in laws can effectively increase the social responsibility practice standards of an industry where global buying firms are profit-driven and governmental agencies are either inadequate or corrupt. (shrink)

This article discusses the extent to which Global Value Chain governance may lead to animal welfare improvement and help to alleviate animal suffering in food producing chains. Our approach relied on scrutinizing two of the most used compulsory certification templates which are enforced by major buyers to their suppliers in order to assure responsible activity in the farmed fish chain and in the wild-captured fish chain. Since fish may experience intense suffering in regular activities involved in catching, maintenance, transport and (...) management, we analyzed whether those instruments can contribute to improve the welfare of fish. Although positive outcomes may be expected in aquaculture production, serious welfare issues regarding wild-capture fish are brought to the fore and preliminary action is proposed. We present recommendations for improving the positive impacts of such certification schemes in GVCs and argue that sustainability-driven standards could also embrace more AW-focused criteria in order to contribute with reducing unnecessary animal suffering in the fish chain. (shrink)

The proliferation of multistakeholder initiatives (MSIs) over the past years has sparked an intense debate on the political role of corporations in the governance of global business conduct. To gain a better understanding of corporate political behavior in multistakeholder governance, this article investigates how firms construct a political identity when participating in MSIs. Based on an in-depth case study of the Accord on Fire and Building Safety in Bangladesh—an MSI established after the collapse of the Rana Plaza garment factory complex (...) in 2013 to improve working conditions in the Bangladeshi garment industry—we introduce the construct of a political CSR (corporate social responsibility) identity (PCSRI) and explore how firms construct their PCSRIs in MSIs. Employing a qualitative, inductive theory-building method, we analyze interviews and archival data to develop a framework that elucidates how companies construct their PCSRIs within a continuum ranging from conservative to progressive. We show that constructing a PCSRI involves enacting specific, yet interrelated, political strategies that are themselves shaped by several forces over time. This article contributes to the literature by providing a political perspective on organizational identity construction that extends the emerging integrative perspective in political corporate social responsibility (PCSR) research. We suggest that MSIs should be conceptualized as inherently political governance mechanisms that are driven by multidirectional and dynamic political processes of identity construction. Our study shows that corporate political engagement in MSIs is a more nuanced and complex phenomenon than presently theorized. (shrink)

Corporate Social Responsibility (CSR) is a concept suggesting that good business is about more than maximizing profit. In order to achieve social legitimacy a corporation must pay attention to a complex web of values and relations, and different CSR strategies and policies can be viewed as ways to manage this complexity. The corporate legitimacy matrix introduced in this article represents the strive for social legitimacy as a balancing act along three lines: a) The sustainability dimension: Balancing economic, social and environmental (...) considerations, b) The stakeholder dimension: Balancing considerations of stakeholders at the local, national and global level, and c) The trust dimension: Balancing rational argumentation, credibility and emotional appeal. This article explores these three aspects of corporate legitimacy and how they are related. It is intended as a theoretical contribution towards a better understanding of the relationship between CSR and corporate legitimacy, as well as a practical tool to support the analysis of actual corporate legitimacy challenges. (shrink)

This article proposes a theoretical re-conceptualization of power dynamics and their legitimation in contemporary business–society relations using the prism and metaphor of parentalism. The paper develops a typology of forms of parentalism along two structuring dimensions: care and control. Specifically, four ideal-types of parentalism are introduced with their associated practices and power-legitimation mechanisms. As we consider current private governance and authority through this analytical framework, we are able to provide a new perspective on the nature of the moral legitimation of (...) power dynamics in contemporary business–society relations. And we weave the threads between this conceptual frame and historical antecedents, suggesting that business ethicists need to revive old debates on paternalism in light of the current pervasive trend of modernized and subtler forms of parentalism. Implications for business ethics and political CSR are discussed. (shrink)

Microfinance aims to better the livelihoods of the bottom of the pyramid by providing them with financial services. However, recent studies show that microfinance can have adverse effects, leading clients into over-indebtedness. This dissertation argues that microfinance clients are by default vulnerable and offers ways to rethink microfinance as client-centered, presuming a responsibility for client protection. Part I discusses the vulnerability of clients and the centrality of their protection. Part II analyzes the causes and consequences of overindebtedness and suggests state (...) regulations, financial literacy programs, and soft law standards for its mitigation. Part III introduces the concept of responsible microfinance, which claims that not only microfinance institutions but also other stakeholders, such as states and transnational and international organizations, have a responsibility to protect microfinance clients. Part IV accepts that over-indebtedness has to be addressed from several angles and considers how public and private actors may enhance its alleviation and develops an encompassing multi-stakeholder framework of responsible microfinance. Developing this framework includes a thorough evaluation of the suitability of ten novel strategies, such as behaviorally informed consumer protection regulations, educational soap operas, and Smart Campaign’s Client Protection Principles, to further the mitigation of overindebtedness. (shrink)

Matten and Moon studied cross-national variations in corporate social responsibility (CSR) forms using an explicit-implicit framework. This article proposes a development and refinement of the explicit-implicit framework to account for, first, intranational variations of CSR, and, second, the role of individual managers in the actual process of developing CSR constructs within a given country. The specific national, institutional context, such as Norway, within which managers construct personal meaning for CSR, is ambiguous and possesses both different and potentially conflicting institutional logics (...) of the role and responsibility of business in a given society. The author suggests that explicit and implicit models of CSR differ in two key respects. One difference concerns whether corporate or collective responsibility mechanisms should be used to address social issues. The other difference concerns whether the scope of issues to which the corporate entity is expected to attend should be broad or narrow. The author proposes four institutional models of CSR that combine the explicit-implicit distinction with these two differences: Explicit Expansionist CSR, Implicit Contractive CSR, Implicit Expansionist CSR, and Explicit Contractive CSR. Focus group interviews with Norwegian managers empirically illuminate these models and the micro-level individual construction of variable meanings for CSR within a national, institutional context. (shrink)

According to Palazzo and Scherer, the changing role of business corporations in society requires that we take new measures to integrate these organizations into society-wide processes of democratic governance. We argue that their model of integration has a fundamental problem. Instead of treating business corporations as agents that must be held accountable to the democratic reasoning of affected parties, it treats corporations as agents who can hold others accountable. In our terminology, it treats business corporations as “supervising authorities” rather than (...) “functionaries.” The result is that Palazzo and Scherer’s model does not actually address the democratic deficit that it is meant to solve. In order to fix the problem, we advocate removing business corporations from any policymaking role in political CSR and limiting participation to political NGOs and other groups that meet the standards we set out for a politically representative organization (PRO). (shrink)

ABSTRACT:This article examines the presuppositions and theoretical frameworks of the “new-wave” “Post-Westphalian” approach to international business ethics and compares it to the more philosophically oriented moral theory approach that has predominated in the field. I contrast one author’s Post-Westphalian political approach to the human rights responsibilities of transnational corporations (TNCs) with my own “Fair Share” theory of moral responsibility for human rights. I suggest how the debate about the meaning of corporate human rights “complicity” might be informed by the fair (...) share theory. While I point out that Post-Westphalians and moral philosophers may have fundamental disagreements about basic concepts such as legitimacy, justice, and democratic deliberation, I conclude that the Post-Westphalians have made a major contribution to the expansion of the field by presenting business ethicists with an opportunity to inform and guide debates about the potential future course of transnational governance. (shrink)

In a globalizing world, governments are not always able or willing to regulate the social and environmental externalities of global business activities. Multi-stakeholder initiatives (MSI), defined as global institutions involving mainly corporations and civil society organizations, are one type of regulatory mechanism that tries to fill this gap by issuing soft law regulation. This conceptual paper examines the conditions of a legitimate transfer of regulatory power from traditional democratic nation-state processes to private regulatory schemes, such as MSIs. Democratic legitimacy is (...) typically concerned with input legitimacy (rule credibility, or the extent to which the regulations are perceived as justified) and output legitimacy (rule effectiveness, or the extent to which the rules effectively solve the issues). In this study, we identify MSI input legitimacy criteria (inclusion, procedural fairness, consensual orientation, and transparency) and those of MSI output legitimacy (rule coverage, efficacy, and enforcement), and discuss their implications for MSI democratic legitimacy. (shrink)

Recent calls in the corporate social reporting literature have emphasized the importance of giving voice to non-managerial stakeholder groups in the social reporting process. The research, presented in this paper, employs recent work in stakeholder theory and CSRep to examine the perceptions of a diverse set of non-managerial stakeholders in the context of a developing country, Bangladesh. A series of semi-structured interviews were conducted with individuals who identify with various non-managerial stakeholder groups. Interviewees generally believed that the motivation and practice (...) of CSRep in Bangladesh is developing in response to pressures from international markets and is producing largely cosmetic responses. Also, they expressed concerns that, given the economic, political, and social conditions in Bangladesh, premature adoption of strict CSRep standards may lead to increased corruption and other unintended consequences. Whilst some of the interviewees sharply criticized the current process of imposing social accounting codes/standards on developing countries which fail to consider the important local socio-economic context, the findings suggest that there is overwhelming support for mandatory externally verified CSRep based on the principles of peoples’ right to know, full disclosure/completeness, and relevance, which are anchored in the broader principles of transparency and stakeholder accountability. (shrink)

This article examines the factors that influence the propensity of corporations to engage with NGOs. Drawing from resource dependency theory and related theories of social networks and the resource-based view of the firm, the authors develop a series of hypotheses that draw from this conceptual foundation to predict a range of factors that influence firms to collaborate with NGOs. These factors include the level of commitment of the firm to CSR, the strategic fit between the firm’s and the NGO’s resources, (...) the level of trust the firm has in NGOs, the frequency of contact with NGOs, prior level and perception of experience with NGOs, and the level of pressure exerted by NGOs. The authors report on results of a survey of the Top 500 firms in the Netherlands on their interactions with NGOs, finding general support for our hypotheses, and suggest that understanding the motives for firm–NGO interactions can teach us more about firms’ corporate social activities and the way such activities are shaped in the dynamic interplay between firms and their stakeholders. Our findings are relevant for future research on cross-sectoral interactions, for corporations considering future relationships with NGO cohorts, and for broader questions about the role of stakeholders and the role of business in society. (shrink)

Following the situation of poverty in the rights paradigm, this paper explores the links between the rights-based and corporate social responsibility approaches to the realization of socioeconomic rights in the broader context of an emerging recognition of CSR as private regulation of business behaviour. It examines complex theoretical and practical dimensions of responsibility and potential contributions of businesses to poverty alleviation and clarifies the apparent paradox of legal compulsion of essentially voluntary CSR activities. Rather than treat rights and CSR as (...) parallel approaches to protecting socioeconomic rights, it is argued that CSR can be part of a coherent framework of laws and policies for legally translating broad human rights commitments to poverty reduction into concrete programmes. The paper demonstrates how legally propped CSR arrangements can support poverty reduction and appropriate task-specific contextualised definitions and boundaries of CSR that complement the rights-based approach. It is argued that human rights principles have normative dimensions to guide and help formulate policies, programmes and practices, which in turn allow for a creative use of and legal prop to CSR. The conceptualization of human rights is not restricted to one implementation method, and CSR can partly satisfy states’ human rights obligations and transcend the narrow conventional human rights discourse on obligations of non-state actors. (shrink)

The ubiquity of the term CSR threatens its carrying any distinctive meaning. Despite its long history no consensus has been developed among the industry participants, academics or other interested parties. After a careful review of the complications and complexities of the CSR debate and distinct disciplinary definitions, the article turns to approach the problem of definition using the philosophy of science. It applies a scientific definitional approach of genus, differentia and species to arrive at a definition of CSR as international (...) private business self-regulation. The article provides an overview of the implications of this definition on CSR as a field of study, a management practice and an approach to improving the dialogue concerning the social contribution of business. (shrink)

Political theories in general and deliberative democracy in particular have become quite popular in business ethics over the past few years. However, the model of deliberative democracy as generally referred to in business ethics is only appropriate for conceptualizing interaction between business and society which occurs within a context which is more or less institutionalized. The model cannot account for “unregulated” interaction between business and civil society. The authors argue that scholars need to resort to the so called “critical strand” (...) of deliberative democracy if we want to conceptualize interaction that happens without the involvement of decision-making institutions as political action in a deliberative sense. Adopting this approach allows us to identify cases in which unregulated interaction between business and civil society is preferable over institutionalization. (shrink)

The article explores the impact of civil regulation on the environmental behaviour of SMEs. It shows that although civil regulatory pressures are generally subdued, and that conventional regulation continues to be an important driver of behaviour, there are circumstances where civil pressures nevertheless produce a ‘regulatory’ stimulus. Where they do, it appears that civil regulatory pressures tend to derive from stakeholders pursuing relatively narrow self-interest (rather than public interest) mandates; and they normally target particular issues rather than ‘social responsibility’ in (...) any broad sense. SME responses typically take the form of compliance-reinforcing (rather than beyond compliance) measures. For SMEs, it is suggested that, in some circumstances, civil regulation provides a bespoke regulatory mechanism which is more likely to bring about changes in basic practices on narrow issues. It can also be seen as producing a particular type of consensual micro-social contract and public interest service. (shrink)

Why and how have supply chain codes of conduct diffused among lead firms around the globe? Prior research has drawn on both institutional and stakeholder theories to explain the adoption of codes, but no study has modeled adoption as a temporally dynamic process of diffusion. We propose that the drivers of adoption shift over time, from exclusively nonmarket to eventually market-based mechanisms as well. In an analysis of an original data set of more than 1,800 firms between the years 2006 (...) and 2015, we find that strong nonmarket labor institutions in a firm’s home country are critical to initiating and sustaining the diffusion process. Market mechanisms, such as investor scrutiny and brand risk, emerge as important later. Contrary to prior research, we did not find a significant effect from nongovernmental organization (NGO) pressure. We conclude that markets for corporate social responsibility can and do arise, but only after they are effectuated by nonmarket institutions. (shrink)

The question of how multinational enterprises respond to local corporate social responsibility expectations remains salient, also in the context of many African governments’ attempts to define and regulate business responsibilities. What determines whether MNEs respond to such local, state-driven expectations as congruent with their global commitment to CSR? Adopting an institutional logics perspective, we argue that a higher global CSR commitment will lead to higher local responsiveness when regulatory distance is low, but it will lead to lower local responsiveness when (...) regulatory distance is high. We find support for our hypothesis using data on 93 MNEs’ responses to the South African state’s Broad-Based Black Economic Empowerment policy. We thus contribute to the global–local CSR literature and show how MNEs’ local CSR responsiveness will be shaped by not only the local context but also their home country and firm-internal environments. (shrink)

ABSTRACT:We develop the concept of stakeholder salience to account for stakeholders who should matter to the firm, even when managers do not perceive them as important. While managers are responsible for attributing salience to stakeholders, they can overlook or ignore stakeholder importance because of market frictions that affect managerial perceptions or induce opportunism. When this happens, corporate financial and social performance can suffer. Thus, we propose that the perceptions of organizational and societal stakeholders should also codetermine the salience of the (...) focal stakeholder to the firm. We also propose that stakeholder dialogue can reduce the impacts that market frictions can have on managerial perceptions of stakeholder interests that should matter to the firm. Finally, we discuss how the refined conceptualization of stakeholder salience might have better predictive validity, be more normative, and make instrumental and normative stakeholder theory more convergent. (shrink)

Multi-stakeholder initiatives (MSIs)—private governance mechanisms involving firms, civil society organizations, and other actors deliberating to set rules, such as standards or codes of conduct, with which firms comply voluntarily—have become important tools for governing global business activities and the social and environmental consequences of these activities. Yet, this growth is paralleled with concerns about MSIs’ deliberative capacity, including the limited inclusion of some marginalized stakeholders, bias toward corporate interests, and, ultimately, ineffectiveness in their role as regulators. In this article, we (...) conceptualize MSIs as deliberative systems to open the black box of the different elements that make up the MSI polity and better understand how their deliberative capacity hinges on problems in different elements. On the basis of this conceptualization, we examine how deliberative mini-publics—forums in which a randomly selected group of individuals from a particular population engage in learning and facilitated deliberations about a topic—can improve the deliberative capacity of MSIs. (shrink)

In our time, innovation is considered an important way to address societal problems. That we expect so much from innovation to solve the challenges of our time, makes the question what could count as ‘responsible innovation’ more pressing. And that is what this thesis is about. The aim of this thesis is to offer philosophical reflections on responsible innovation in the business context. Since that is still a quite broad topic, the main title suggests its further focus: deliberation and food. (...) The first focus originates from the idea in the academic literature on responsible innovation, that innovators should not just assess by themselves what ‘responsible’ is, but should invite others to think along with them about the social and ethical aspects of innovation. Chapter 2 to 4 zoom in on this aspect of responsible innovation. The second focus has to do with the specific context of application, namely food and the food industry. Chapter 4 and 5 relate the topic of responsible innovation to this context. The question I raise in chapter 2 is whether the ideal of inclusive deliberation is suitable for innovation processes in businesses. I argue that this is not so easy, and provide different reasons why companies might not be willing to involve societal stakeholders into their innovation processes. First, the requirement of deliberation can be tension with the ability of companies to exploit their innovations commercially within a competitive market. Second, deliberation requires a certain degree of transparency about the innovation strategy of a company. Companies might not be willing to provide this transparency, because they fear knowledge leakage to other companies. Third, companies are controlled most often by people with a financial stake. Therefore, we can expect that financial considerations are decisive in the investment decisions of companies. This could conflict with the ideal of responsible innovation to ‘democratize’ innovation processes. Hence, I suggest that scholars should modify the ideal of deliberation in order to make it suitable to the business context, or they should suggest changes in the governance and regulation of markets so as to make deliberation more workable. Chapter 3 discusses the place of conflict and self-interest in deliberation. It starts with a discussion of the literature on stakeholder dialogue. In this literature, the ideal dialogue is presumed to aim at consensus. This also implies that participants avoid conflict and set self-interested considerations aside. I argue that this ideal of dialogue is problematic, especially for a dialogue between companies and NGOs. I show that companies can never completely set aside their profit-orientation, and hence that this ‘self-interest’ always influences their input in a dialogue. Furthermore, conflict and criticism can be necessary to make clear that societal problems require more attention, whether from the general public or from companies. Since the market is an imperfect institution, we need critical citizens and stakeholders such as NGOs to assess the behavior of companies. A certain degree of conflict between companies and NGOs may therefore be more desirable than a focus on consensus. For these reasons, I develop an alternative approach to dialogue in which conflict and self-interest have a legitimate place, and can even play a productive role. In chapter 4, a case-study is conducted to better understand how participants in a dialogue deal with conflicts. In this case-study, I analyzed different dialogues organized by the foundation ‘Ik Kies Bewust’, which issued a front-of-pack health label. In my analysis, I investigate the conflict between, on the one hand, the value of public health and healthy food, and, on the other hand, the commercial interests of companies. In the responses of companies to this conflict, three patterns became visible. First, companies frame their critics as not constructive, because, in their view, they only criticize but do not help to improve the label. Second, they stressed that they are really and genuinely motivated to make food healthier or to make a healthy food choice easier. Thereby, they seemingly tried to counter the image that they are just motivated to make profit. Third, they called on the government to take more control over the label, because this would make the label more reliable and more broadly adopted. I qualify these responses as defensive, which means that the conflict between commercial considerations and public interests is suppressed or ignored. An active response would require to recognize and confront the conflicts and dilemmas that companies face. The case-study makes clear how difficult it can be to engage in dialogue with critical stakeholders. In chapter 5, I reflect on how food innovation can be responsible. In trying to answer this question, I take a certain detour, by starting a discussion about the place of food in a life well-lived. For this purpose, I use the philosophy of Albert Borgmann. On the basis of my analysis of his philosophy, I argue that there are good reasons for engaging with food in active way, for example by growing your own vegetables and home-cooking, instead of consuming food merely passively. I also draw some implications for food innovation. In my view, people responsible for food innovation should critically assess whether new products or services enhance engagement or disengagement. Is it desirable, for example, to develop even more and better pre-packaged meals, or should we stimulate consumers to cook by themselves? I argue that it would be problematic if our overall pattern of dealing with food is characterized by disengagement and convenience, and hence that food innovation should not only go in this direction. (shrink)

Despite their growing usage in commercial and industrial applications, nanomaterials have yet to be been thoroughly researched as to their potential health, safety, and environmental risk to human life after incorporation into new product improvement, development, design, and manufacturing processes. Identifying the appropriate governance framework for effective risk assessment analysis of toxicological risk to human beings—specifically manufacturing employees and consumers—and other living organisms, resulting from the development and application of these nanotechnology-based products, has yet to be scientifically determined. With major (...) regulatory gaps in the public regulation framework at national and international levels of governance, a proposed private governance framework is needed to assist the existing public regulatory framework with the proliferation of products and manufacturing processes utilizing nanomaterials. There are three distinct (yet complimentary) approaches available to develop a private governance framework to complement existing national public regulatory frameworks: responsible innovation, risk management, and voluntary guidelines/industry standards. The case for supporting a hybrid governance framework, combining public and private governance mechanisms, for nanotechnology is reflective of the current public policy environment that has emerged to best address health, safety, and environmental risk assessment issues concerning nanotechnology and nanomaterials. (shrink)

Scholars studying the global diffusion of “corporate social responsibility” (CSR) practices and the associated rise of privatized forms of economic governance have tended to shift attention away from the role of corporations in motivating these processes to the one played by nonbusiness forces seeking social control of corporations. We bring corporate power back in by turning the spotlight to the agency of business classes, the business entities capable of pursuing transcorporate, societal-level, macro-political endeavors. Building on a comparative investigation of two (...) of the world’s earliest mass CSR adoptions, in postwar Venezuela and Britain, we argue that business classes responding to anti-capitalist challenges were the original diffusers of CSR practices and, interrelatedly, promoters of CSR-based, privatized forms of regulation and governance. Organized by peak business associations, the purpose of these “business-class CSR mobilizations” was to weaken the state in its relation to corporations and increase the control of business over social trends. We discuss the contribution of our historical perspective and analytical approach to a more complete and balanced picture of the global rise of CSR in late capitalism. (shrink)

In recent years, the fight against money laundering has emerged as a key issue of financial regulation. The Wolfsberg Group is an important multistakeholder agreement establishing corporate responsibility principles against money laundering in a domain where international coordination remains otherwise difficult. The fact that 10 out of the 25 top private banking institutions joined this initiative opens up an interesting puzzle concerning the conditions for the participation of key industry players in the Wolfsberg Group. The article presents a fuzzy-set analysis (...) of seven hypotheses based on firm-level organizational factors, the macro-institutional context, and the regulatory framework. Results from the analysis of these 25 financial institutions show that public ownership of the bank and the existence of a code of conduct are necessary conditions for participation in the Wolfsberg Group, whereas factors related to the type of financial institution, combined with the existence of a black list, are sufficient for explaining participation. (shrink)

Civil society organizations attempt to induce corporations to behave in more socially responsible ways, with a view to raising labour standards. A broader way of conceptualizing their efforts to influence the policies and practices of employers is desirable, one centred upon the concept of civil governance. This recognizes that CSOs not only attempt to shape the behaviour of employers through the forging of direct, collaborative relationships, but also try to do so indirectly, with interactions of various kinds with the state (...) being integral. Drawing on evidence derived from UK-based CSOs involved in work and employment relations, four types of civil governance are identified and characterized. By elaborating the concept of civil governance, and demonstrating how different types of civil governance operate, the research extends our knowledge and understanding of how CSOs, as increasingly prominent actors in the field of work and employment relations, operate within, and contribute to, systems of labour governance. (shrink)

The Global Economic Ethic Manifesto (" Manifesto") is a moral framework/code of conduct which is both interactive and interdependent with the economic function of the main institutions of the economic system: markets, governments, civil society, and supranational organizations, which lays out a common fundamental vision of what is legitimate, just, and fair in economic activities. The Manifesto includes five universally accepted principles and values: the principle of humanity; the basic values of non-violence and respect for life; the basic values of (...) justice and humanity; the basic values of honesty and tolerance; and the basic values of mutual esteem and partnership. We posit that the Manifesto provides an ethical foundation for explicitly assisting multinational enterprise's (" MNE") executive management and boards of directors to meet the moral failures criticisms associated with the expansion of global capitalism, and similarly how the U. N. Global Compact (" Compact") is focused on addressing complimentary market and institutional failures. In this article, we argue how the Compact and the Manifesto complement each other, explaining how the policies and guidelines of the Compact can now be implemented at the organizational/individual level through a comprehensive human resource management (HRM) plan supporting the ethical framework of the Manifesto. Finally, we have described how the Manifesto completes a comprehensive managerial framework (consisting of both the Compact and the Manifesto) for what we term an "MNE Moral Values-Based Corporate Governance Model." Ultimately, further research is needed in understanding how much impact external and internal influences make on creating a sustainable ethical culture in MNEs. (shrink)

This article analyses and systematises the repertoires of action and reaction within conflicts between corporations and adversarial campaigns. Particular attention is paid to the parameters that turn conflicts between corporations and their critics into productive or destructive exchanges. Are protest campaigns able to fulfil a function that goes beyond serving as a seismograph for civil society’s concern and discontent? Which are the circumstances that enable conflicts between protest campaigns and corporations to unfold their potential for correcting social deficiencies? The analysis (...) starts by outlining several typologies of confrontational and cooperative repertoires of action. Based on this starting point, a comprehensive analysis of more than 100 campaigns is presented, which systematises the dynamics of conflict between protest campaigns and corporations. An exemplary comparison of two particular conflicts completes the article in order to elaborate on the interplay between confrontation and cooperation. (shrink)

Relations between non-governmental organizations (NGOs) and companies have been the subject of a sharply increasing amount of publications in recent years within academic business journals. In this article, we critically assess this fast-developing body of literature, which we treat as forming a ‘business and society discourse’ on NGO–business relations. Drawing on discourse theory, we examine 199 academic articles in 11 business and society, international business, and management journals. Focusing on the dominant articulations on the NGO–business relationship and key signifiers they (...) rely on, we analyze the problem-settings of articles in order to reveal the statements that are acceptable and appropriate within this field. Our threefold aim is to (1) identify dominant articulations of NGO–business relations in business and society discourse, (2) expose those articulations that are silenced or suppressed by these dominant articulations, and (3) critically assess possible power effects of these discursive dynamics in the field of discursivity. While business and society discourse on NGO–business relations overall remains open to many different articulations, we also find that those articulations that focus on NGO–business partnerships and governance initiatives tend to privilege collaborative and deliberative ways of engaging and marginalize more adversarial subject positions. We call for more recognition of the potentially constructive role that can be played by conflict. (shrink)

While Corporate Social Responsibility (CSR) is often seen to involve voluntary and deliberative approaches such as certification, governments have recently stepped into the picture through national legislation. France’s Law on Duty of Vigilance adopted in 2017 is a landmark case of such legislation. Years of voluntary CSR certification schemes led by Civil Society were replaced by a new philosophy of fighting for mandatory CSR controlled by a judge. We depict the change of mindset and the related change of roles inside (...) the coalition of Civil Society actors represents a Machiavellian Moment. The combination of collective civil society actors’ roles (namely nongovernmental organizations and labor unions) as Machiavellian _Virtue_ with disruptive events as Machiavellian _Fortuna_ made the law’s adoption possible. Based on this case study, we provide an analysis of civil society roles in the development of CSR-related legislation. (shrink)

This article examines the legitimacy attached to different types of multi-stakeholder data partnerships occurring in the context of sustainable development. We develop a framework to assess the democratic legitimacy of two types of data partnerships: open data partnerships and closed data partnerships. Our framework specifies criteria for assessing the legitimacy of relevant partnerships with regard to their input legitimacy as well as their output legitimacy. We demonstrate which particular characteristics of open and closed partnerships can be expected to influence an (...) analysis of their input and output legitimacy. (shrink)

This article provides an overview of the field of business ethics.

When is industry self-regulation (ISR) a legitimate form of governance? In principle, ISR can serve the interests of participating companies, regulators and other stakeholders. However, in practice, empirical evidence shows that ISR schemes often under-perform, leading to criticism that such schemes are tantamount to firms marking their own homework. In response, this paper explains how current management theory on ISR has failed to separate the pragmatic legitimacy of ISR based on self-interested calculations, from moral legitimacy based on normative approval. The (...) paper traces three families of management theory on ISR and uses these to map the pragmatic and moral legitimacy of ISR schemes. It identifies tensions between the pragmatic and moral legitimacy of ISR schemes, which the current ISR literature does not address, and draws implications for the future theory and practice of ISR. (shrink)

Key accomplishments of political corporate social responsibility scholarship have been the identification of global governance gaps and a proposal how to tackle them. Political CSR scholarship assumes that the traditional roles of state and business have eroded, with states losing power and business gaining power in a globalized world. Consequently, the future of CSR lies in political CSR with new global governance forms which are organized by mainly non-state actors. The objective of the paper is to deepen our understanding of (...) political CSR and reintegrate notions of state power into political CSR scholarship by highlighting how states set the context within which business takes place, regulate offshore business practices, and play pivotal roles in new global governance mechanisms. (shrink)

Using the political corporate social responsibility lens of parentalism, this paper investigates the more subtle and less-visible interactional dynamics and strategies of power, resistance and justification that manifest between a multi-stakeholder-governed foundation and victims of a mining corporation’s dam collapse. The Renova Foundation was established to provide remedy through a deliberative approach to hundreds of thousands of victims from Brazil’s worst socio-environmental disaster—the collapse of Samarco Mining Corporation’s Fundão tailings dam. Data were collected from a combination of fieldwork and archival (...) analysis to assess the perceptions of victims, their defenders and foundation executives. The findings reveal 12 dialectical tensions from Renova’s attempts to remedy the victim’s injustices. The case analysis contributes through proposing a dialectical process model of stakeholder resistance and subversion to parentalist PCSR. The case reveals the pivotal use of time via the act of stalling as a strategic resource to exhaust victims and reach settlements. Furthermore, organizations justify their parentalism by blaming delays on the bureaucracy and shared responsibility of multi-stakeholder deliberation. Ultimately, I contend that victims must have an equal voice in the outcome of their remediation and that businesses responsible for causing harm should not decide these matters. (shrink)

Political theories in general and deliberative democracy in particular have become quite popular in business ethics over the past few years. However, the model of deliberative democracy as generally referred to in business ethics is only appropriate for conceptualizing interaction between business and society which occurs within a context which is more or less institutionalized. The model cannot account for “unregulated” interaction between business and civil society. The authors argue that scholars need to resort to the so called “critical strand” (...) of deliberative democracy if we want to conceptualize interaction that happens without the involvement of decision-making institutions as political action in a deliberative sense. Adopting this approach allows us to identify cases in which unregulated interaction between business and civil society is preferable over institutionalization. (shrink)

Exploration of the political roles firms play in society is a flourishing stream within corporate social responsibility research. However, few empirical studies have examined multiple levels of political CSR at the same time from a critical perspective. We explore both how the motivations of managers and internal organizational practices affect a company’s choice between competing CSR approaches, and how the different CSR programs of corporate and civil society actors compete with each other. We present a qualitative interpretative case study of (...) how a French children’s clothing retailer develops CSR practices in response to accusations of poor working conditions and child labor in its supply chain. The company’s CSR approach consists of superficial practices, such as supplier audits by a cooperative business-organized nongovernmental organization and philanthropic activities, which enable managers to silence more radical alternative models defended by other NGOs, activists, and trade unions. By this approach, the core business model based on exploitative low-cost country sourcing remains intact through self-regulated CSR. Through the case study, we develop a framework of dynamism in competing CSR programs. We discuss the implications of our study for CSR researchers, company managers, and policy makers. (shrink)

This paper addresses the issue of the influence of global governance institutions, particularly international sustainability standards, on a firm’s intra-organizational practices. More precisely, we provide an exploratory empirical view of the impact of the Global Reporting Initiative on a multinational corporation’s corporate social responsibility management practices. We investigate standard compliance by comparing the stated intention of the use of the GRI with its actual use and the consequent effects within the firm. Based on an in-depth case study, our findings illustrate (...) the processes and consequences of the translation of the GRI within the organization. We show that substantive standard adoption can lead to unintended consequences on CSR management practices; specifically it can influence the management structure and CSR committee function; the choice of CSR activities, the relationships between subsidiaries, the temporal dimension of CSR management and the interpretation of CSR performance. We also highlight the need to look at the relationship dynamics between standards. Finally, we illustrate and discuss the role of reporting and its influence on management in order to better understand the internal issues arising from compliance with standards. (shrink)

This paper investigates the roles that Danish government has played in the development of corporate social responsibility (CSR). Denmark has emerged as a first mover among the Scandinavian countries when it comes to CSR. We argue that government has played a pivotal role in making this happen, and that this reflects strong traditions of regulation, corporatism and active state involvement. However, there is no unitary “Danish model of CSR” being promoted by government. Although Danish society is often associated with a (...) model of consensus, our claim is that Danish government policy on CSR is characterized by a lack of common direction and that we need to approach it on such terms. In order to provide a critical account of ‘the Danish model’ we apply a governmentality perspective that allows us to stress political difference. We argue that Danish government policy consists of three distinct regimes of practice and show how they subject CSR to different modes of rationalization and action. We conclude that the problem with public policy being split into three is not different as such, but the failure of each regime to recognize the value of the others. As a result, government tends to add to the confusion and opaqueness of CSR. (shrink)